Table of Contents
The world market for electric car batteries was worth USD 50.12 billion in 2021, and it is expected to grow at a CAGR of 18.9% from 2022 to 2025. The industry trends for EV batteries should be affected because battery prices are decreasing, more people are learning about zero-emission cars and new technologies are being made.
Introduction To The Industry Trends for EV Batteries
As the world moves faster toward electric cars, there has been a huge rise in the demand for batteries in the United States and Europe, two of the world’s biggest auto markets. Due to the uncertainty of the current battery supply chain, many cars and battery makers are forming partnerships or building their battery giga-factories to meet rising demand.
Between 2020 and 2030, sales in the battery value chain could grow by as much as ten times to as much as $410 billion per year. Demand is expected to grow by about 30%, nearly 4,500 GWh annually worldwide.1 Figure 1 shows that 40% of the world’s need for lithium-ion batteries will come from China in 2030. According to the prediction, the most common formulas should be a 50/50 mix of lithium iron phosphate (LFP) and lithium nickel manganese cobalt oxide (NMC). Over 90% of the demand will come from mobility uses, like electric vehicles (EVs). Battery makers must make the right investments to stay competitive in a world where other industries always need more raw materials.
Industry trends for EV batteries: Report Segmentation
The main things that separate the market are the battery, how it moves, the vehicle, the method, the size, shape, and material of the battery, and where it is.
| By Battery | By Propulsion | ByVehicle | By Method | By Battery Capacity | By Battery Form | By Material | By Region |
| Lead-AcidLithium-IonPositive ElectrodeNegative ElectrodeElectrolyteSeparatorNickel-Metal HydrideSodium-IonSolid-State | BEVHEVPHEVFCEV | Passenger CarsVans/Light TrucksMedium & Heavy TrucksBusesOff-Highway Vehicles | Wire BondingLaser Bonding | 5o kWh50-11o kWh11-200 kWh201-300 kWh>300 kWh | PrismaticCylindricalPouch | LithiumCobaltManganeseNatural Graphite | North America (U.S., Canada)Europe (France, Germany, UK, Italy, Netherlands, Spain, Russia)Asia Pacific (Japan, China, India, Malaysia, Indonesia, South Korea)Latin America (Brazil, Mexico, Argentina)Middle East & Africa (Saudi Arabia, UAE, Israel, South Africa) |
Lithium-ion batteries were clearly in the lead in terms of sales share in 2021. These batteries are becoming increasingly popular because they are light and have a lot of energy in a small space. Lithium-ion batteries are becoming more popular in electric cars because they are safer than other types. Fast-charging sessions are also expected to help the market grow over the next few years. Also driving market growth are battery cells with a long life cycle and a layered structure that makes them very durable and reliable.
BEVs Are Projected To Play A Leading Role In The Upcoming Days
BEVs are fully electric and run on batteries that can be charged, so their growing popularity is expected to lead to market growth. One of the main things that help the business grow is that technology is improving, and battery prices are decreasing. BEVs, which don’t release harmful gases like traditional gasoline cars, are expected to be a big reason for sales growth during the projection time.
The Market Can Be Dominated By Passenger Automobiles
As electric cars become more popular in developing and developed countries, passenger cars are expected to keep their market share and grow their lead during the prediction period. As more and more countries pass pollution laws, this part of the market for EV batteries is expected to grow at a rate that has never been seen before. The market for electric cars is expected to grow because more people are interested in technology, consumer tastes are changing, more people are moving to cities, and per capita income is increasing.
Laser Bonding Would Have The Greatest CAGR
Since laser-welded connections can handle higher currents better, this method is expected to have the highest CAGR over the next few years. This market is growing because it has the benefits of narrow, high-speed welding at a lower heat. This makes it a good choice for joining battery cells with compounds sensitive to heat. The accuracy and non-contact welding of lasers, which uses a concentrated heat source and can be changed to fit small, hard-to-reach spots, help the market grow.
Rapid Expansion Is Anticipated In The 50-110 kWh Range
Most electric cars have between 50 and 110 kWh of battery power. This range is expected to grow over the projection period because fast charging at low cost and a good energy economy will make this possible. The category is growing because 50-110kwh electric vans and light vehicles are so common. Fuel costs going up and the government trying to cut truck and bus emissions are both things that are expected to help this sector grow.
In 2030, The Pouch Market Is Predicted To Be The Most Lucrative One
The pouch group is expected to lead the market during the forecast period because it can store more energy. Pouch cells use a sealed piece of flexible foil instead of a hard container. Also, the way the products are packaged is easy, so they weigh as little as possible and fit in the available space. These things are expected to help increase sales during the projected year. The market’s growth is also expected to be helped by car companies becoming more interested in pouch cells.
Lithium-based Product Category Is Anticipated To Grow At A Rapid Rate
Lithium-based materials are expected to make the most money over the next few years as a solid anode. The main thing that is making this market grow is that lithium-ion batteries are getting lighter and cheaper. In addition to helping the market grow, they cut costs and ensure the highest possible safety standards are met.
Growth & Leadership May Occur Mostly In Asia-Pacific
Due to more people living in cities and spending more money in countries like China, India, Malaysia, and Japan, the electric vehicle battery market in the Asia Pacific is expected to grow faster than in any other area over the next five years. The government’s push to turn two- and three-wheelers into electric vehicles is also expected to drive demand over the next few years. Also, the fact that people care about clean energy, that electric cars are made in China, and that India is the world’s biggest importer of lithium-ion batteries all point to a bright future for the industry’s top line.
Industry trends for EV Batteries: Analyzing the Competition
Companies like Atlasbx Co. Ltd., Bb Battery Co., BYD Company Ltd., C&D Technologies, Inc., Contemporary Ampere Technology Co., Ltd, Crown Battery Manufacturing, Duracell, East Penn Manufacturing Company, Enersys, Inc., EV Battery Market, Exide Industries Limited, Gs Yuasa Corp., Hitachi Chemical Co., Ltd., Huanyu New Energy Technology, LG Chem, Narada Power Source Co., Ltd.
New Consequences Of The Industry trends for EV batteries
In June 2022, Heilongjiang Transport Development Co., Ltd. teamed up with Modern Amperex Technology Co., Ltd. to study battery charging and changing for heavy trucks, battery switching for cruise taxis, and battery switching for online ride-hailing taxis. In May 2020, CATL and Solaris, a major European electric bus maker, joined forces to speed up the switch to electric public transportation across Europe. Lithium-iron phosphate batteries made by CATL will drive Solaris buses. These batteries use cutting-edge cell-to-pack technology and will be used to power Solaris buses.
Top 5 Industry trends for EV batteries Predicted By IDTechEx
- Until 2031, regional demand for battery electric and plug-in hybrid vehicles is expected to increase.
The global car sector took a significant setback in 2020, while EV sales kept rising worldwide in 2021. Even though the automotive business has been shrinking and chip scarcity has affected vehicle sales, EVs have seen phenomenal growth. Sales of automobiles worldwide have increased dramatically in 2021, reaching 6.3 million units. In terms of expansion, China and Europe are in the lead. In China, sales of automobiles increased by 154% from 2019 to 2020, from 3 million to 1.4 million. Germany’s strong year-end market share of 26% is particularly outstanding among European countries.
Electric vehicles are selling at a rate that exceeds supply. Almost every builder has pledged to increase output and electrification goals during the next decade, and several have already begun to implement these plans. No longer is asked, “Will EVs be the future of the automotive industry?” but rather, “How large will it be?” Some nations have proposed outlawing internal combustion engine cars within the next decade. In contrast, others have pledged billions in subsidies to buyers (e.g. the United States), unveiled government plans and incentives (e.g. China), or established CO2 goals and consumer subsidies (e.g. Europe). IDTechEx predicts that 2031 worldwide sales of BEV and PHEV automobiles will be 9.6 times bigger than in 2020.
- The typical battery pack capacity rises (in kilowatt-hours).
The capacity of batteries is a barrier to the expansion of the electric vehicle market. However, the average pack capacity of BEV and PHEV vehicles will rise 81% in China and Europe and 71% in the US between 2015 and 2020. The average battery capacity in the United States is 43% larger than in Europe and 71% higher than in China, where electric vehicles are utilized mostly within cities and hence require a far shorter range. On the other side, their production costs are substantially lower. True, the battery pack’s capacity mostly impacts the cost, as it affects the demand for resources required to manufacture the cells and the pack they are housed in. The direction of travel for large vehicles is unwaveringly toward higher capacity and shorter charge periods. Compromises may be required, however, for medium and small-size cars and entry-range vehicles (plans from EV manufacturers are still to be determined). IDTechEx predicts that by 2031, the demand for kWh from BEV and PHEV vehicles will be 21.8 times more than in 2020. A massive market for battery producers and suppliers like ACC.
- Upgrading to Silicon-based Anodes
The energy density of EV batteries is another holy grail that will help drive EVs over greater distances. New materials like silicon are entering the market, which bodes well for this field. The capacity of silicon and silicon oxides is 10 times that of graphite. Also, silicon may be crucial in offsetting the lower energy density that results from employing LFP rather than NMC or NCA. As a result, they are anticipated to become more commonly used in conjunction with graphite anodes. Some rechargeable battery producers have already shown interest in using LFP cathodes with silicon-graphite anodes. We are considering using silicon in our NMC cathodes as a potential ACC. IDTechEx predicts a 100 per cent increase in silicon demand by 2031 due to the proliferation of high silicon content anodes, the widespread use of automotive batteries that use silicon as an additive, and the underlying rise in BEVs.
- Packing supplies are in high demand
The current trend in battery production is towards “cell-to-pack” or even “cell-to-body” designs, which greatly reduce the amount of raw materials required to make a battery pack. Although nickel, cobalt, and lithium are essential for cathode chemistry, the demand for all battery-building elements is rising thanks to the expanding EV industry. Metals like steel, aluminium, and copper, and non-metals like composite constructions, thermal interface materials, and intercell materials are all used in battery packs today. When forecasting overall demand, these factors must also be taken into account. IDTechEx projects that by 2031, the demand for materials used in battery packs will have increased by 11.9 times for aluminium and 15.3 times for copper above 2020 levels.
- Composite materials are replacing aluminium in enclosures
Because of its low cost, high strength-to-weight ratio, and widespread application in automobiles, aluminium has become the material of choice for EV battery pack enclosures. However, in recent years there has been an uptick in the demand for composite components like battery lids in battery enclosures. Composites are more durable than aluminium but much lighter in weight. IDTechEx predicts a considerable growth in demand for composite components used in EV battery packs, even though they have not yet totally replaced aluminium owing to difficulties in manufacturing, pricing, certifying, and providing EMI shielding. Their research indicates that by 2031, demand will have increased by a factor of 63.5, with average demand per vehicle increasing by 2.
Industry trends for EV batteries: The Bottom Line
A big reason there aren’t enough key raw materials is that more and more people need batteries. Even though lithium production increased by 180% from 2017 to 2022, demand was still higher than supply. This was also the case in 2021. In 2022, more than 60% of lithium, 30% of cobalt, and 10% of nickel were used to make batteries for EVs. Few years ago, in 2017, these numbers were about 15%, 10%, and 2%.
As we’ve already seen with lithium, the mining and processing of these important materials will need to go up quickly to keep up with the speed of demand for clean energy technology and keep the energy shift going. It isn’t just true for EVs but for clean energy technology in general. As the use of electric vehicles becomes more widespread, the battery sector is seeing tremendous growth to meet the rising demand. However, if manufacturers invest aggressively to capture the opportunity, it could threaten their core business. Those in the car and battery industries who prioritize three factors will be best positioned to profit from the rising demand for electric vehicles.
